ONW
Well-known member
- Joined
- Apr 19, 2011
- Messages
- 19,177
- Reaction score
- 658
" Wall Street helped supply the need and attempted to craft investment-grade securities out of crap loans by structuring securities with a waterfall of tranches. The highest tranches were expected to pay out in anything but a nuclear holocaust and S&P and Moody’s rated them as such, relying on flawed models and perhaps their own desire to keep the underwriters happy. They pay for the ratings system, after all."
"Certainly John Paulson, Phil Falcone and other investors were able to see through the ratings smoke and make tens of billions of dollars shorting the very same mortgages that S&P, Moody’s, Fannie Mae and Freddie Mac thought could be made investment-grade through the miracle of structured finance."
"Standard & Poor’s got an important concession in return. According to the company’s news release, it admitted to “no findings of violations of law.”"
"At least nobody had to go to jail over it."
http://www.forbes.com/sites/danielf...-shows-futility-of-fighting-goverment-policy/
"Certainly John Paulson, Phil Falcone and other investors were able to see through the ratings smoke and make tens of billions of dollars shorting the very same mortgages that S&P, Moody’s, Fannie Mae and Freddie Mac thought could be made investment-grade through the miracle of structured finance."
"Standard & Poor’s got an important concession in return. According to the company’s news release, it admitted to “no findings of violations of law.”"
"At least nobody had to go to jail over it."
http://www.forbes.com/sites/danielf...-shows-futility-of-fighting-goverment-policy/